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a) The legal relationship was created between the passenger (to whom the travel agents were selling tickets and the concerned airline) as on the basis of said ticket, the passenger was entitled to travel in the concerned airline. Any request made by the passenger was to be forwarded by the agent to the traffic carrier/airline to enable the carrier to extend such services to the customer.
b) By entering into such a legal relationship on behalf of the principal (the airline) by issuing the traffic documents to a third party, i.e., passenger.
c) Similarly, by virtue of such a transaction, i.e., issuance of traffic documents by a travel agent to passenger, it enables the principal, i.e., airline to issue the same to the third party, which is the passenger.

21. Another argument was raised in the said case, viz., that the assessee airline was not paying income by way of commission, as „the supplementary commission‟ was retained by the travel agent and thus, Section 194H of the Act was not attracted. This contention was brushed aside in the following manner:

"23. This brings us to the second leg of the transaction as to whether income by way of commission has been paid by the assessee-airline to the travel agent. It is not disputed that any amount which the travel agent would receive over and above the net fare would be assessed in the hands of the travel agent as profit, gain or income. As a matter of fact one of the submissions of the learned Counsel for the assessee-airline has been that they ought not to be held an assessee-in-default in view of the fact that the supplementary commission, that is, sums received over and above the net fare by the travel agent and retained by them have been disclosed by travel agent as their income on which the travel agents have paid tax. In view of this we find no difficulty in holding that supplementary commission is income within the meaning of Section 194H of the Act.
28. In view of the above we hold that the supplementary commission which is the amount retained by the travel agent is commission within the meaning of Section 194H read with Explanation (i) to the said section. The assessee-airlines were thus obliged to deduct tax at source at the rate prescribed during the relevant period. The assessee-airline having not deducted the tax at source, they are liable to be held, within the terms of Section 201 (1) as assessee(s)-in-default and also liable for payment of interest in terms of Section 201 (1A) of the Act. In view of the fact that the Tribunal having coming to the conclusion that Section 194H of the Act was not applicable and hence did not examine any other contention of the assessee-airline, as also, the quantum and the period for which assessee-airline would be entitled to pay interest or to what extent the benefit of the certificate issued to them, if any, under Section 197 of the Act would be available. We allow the following appeals and set aside the impugned judgments passed by the Tribunal in each of these appeals and remand the matter to the Tribunal for examining all other aspects of the matter as also the consequences which would flow therefrom."